Certified Payroll Workshop – District 2 April 2, 2012 CERTIFIED PAYROLL CERTIFIED PAYROLL Introductions Introductions WORKSHOP WORKSHOP � Presenters: Hosted by ◦ Vinu Patel M Squared Engineering, LLC ◦ Minal Hahm, PE, CFM on behalf of � Attendees – Welcome and introduce The Illinois Department of Transportation – around the room Office of Business and Workforce Diversity ◦ Name / Title April 2, 2012 ◦ Company ◦ How can we help you today? Certified Payroll Reporting Certified Payroll Reporting Miscellaneous Miscellaneous Requirements - Davis Requirements Davis-Bacon Bacon Announcements Announcements Act Act � Cell phones A U.S. federal law, the Davis-Bacon Act of � Format for today 1931, set wage rate requirements on ◦ Casual – questions can be asked government funded construction projects (public work projects). All contractors and throughout ◦ Will have a brief break half-way through subcontractors who perform work on government construction contracts and � Pre-requisite federally-assisted construction projects ◦ Attendees understand DOT website over $2,000.00 are required to submit ◦ Good understanding of reading plans and weekly-certified payroll reports to ensure specifications government contract compliance. ◦ If not – we’ll work through it and follow up with more detail at a later date. Purpose of the Davis Purpose of the Davis-Bacon Bacon Purpose of the Copeland Purpose of the Copeland Act Act “Anti-Kickback” Act “Anti Kickback” Act � Assures workers a fair wage � Prohibits contractors from inducing an employee to give up any part of the � Provides contractors a fair opportunity compensation to which they are � Helps to keep the local workers entitled under their contract of employed employment. � Distributes employment & federal � Requires the contractor to submit a money equitably weekly statement of the wages paid to each employee performing covered work. 1
Certified Payroll Workshop – District 2 April 2, 2012 Certified Payroll Reporting Certified Payroll Reporting Certified Payroll Reporting Certified Payroll Reporting Information reported in the Certified A Certified Payroll Report (SBE 48) is Payroll must also match: a specially formatted payroll report, Equal Employment Opportunity • consisting of two pages: Workforce Analysis (SBE 956) –Monthly ◦ Payroll Report – This contains information report that looks at number of employees and the number of hours about who worked on the job, how much that they worked. you paid them, etc. Weekly Trainee Report (SBE 1014) – • ◦ Statement of Compliance – This contains Reports hours and days worked by legal language and requires the original trainees weekly. signature of a company official who is Internal Revenue Service – Report to • signing this document under penalty of the IRS what the employees made. perjury. Certified Payroll Reporting Certified Payroll Reporting Certified Payroll Reporting Certified Payroll Reporting � Illinois has enacted their own prevailing wage laws. � To Find Illinois prevailing wage rates, go to the Illinois Department of Labor website listed below: http://www.state.il.us/agency/idol/rates/rates.HTM 1. Select the month-year that you are interested in. 2. Select the county where the construction work will occur. Prevailing Wage Rates Prevailing Wage Rates Certified Payroll Reporting Certified Payroll Reporting Example Example 2
Certified Payroll Workshop – District 2 April 2, 2012 Prevailing Wage Law Prevailing Wage Law Certified Payroll Reporting Certified Payroll Reporting Requirements Requirements � Pay your employees on a weekly basis. � How much time should I expect to fill � That Certified Payroll Reports should be out the form? completed and submitted on a weekly � For 8 employees, it should take about 1 basis to the company that hired you hour within 7-10 business days from the date that you paid your employees. � What other forms might I be required to � No Work Payrolls are required whenever submit? there is a temporary break in your � Fringe Benefit Reports company’s work on the project. � EEOC / Work Utilization Report � Reports must be numbered consecutively, including the “No Work” � ARRA Reports payrolls. Prevailing Wage Law Prevailing Wage Law Requirements Requirements � Every Contractor or Subcontractor is required to keep to complete set of their own certified payroll reports and other basic records, such as, time cards for the project and payroll records, for at least 3 years AFTER the project is completed. � ARRA Reports are required to be submitted Monthly. � EEOC/Work Utilization Reports can be required to be submitted Weekly, Monthly, or Annually; depending upon the state your business resides in and the Public Entity that originally put the job out to bid. � Fringe Benefit Reports can be required to be submitted monthly but not less than quarterly. 3
Certified Payroll Workshop – District 2 April 2, 2012 Form SBE 48 Form SBE 48 X 123456 2378 Dane Hill Road West Charleston, IL 05872 Form SBE 48 Form SBE 48 I-5 Main-Vine 1 Cook 7 11-Jun-2010 49L11 Form SBE 48 Form SBE 48 Eleven C Employee 156 No Street W LA J Anytown,None 59932 4444 4
Certified Payroll Workshop – District 2 April 2, 2012 Form SBE 48 Form SBE 48 Sun Mon Tue Wed Thu Fri Sat 0 2.92 6.45 3.07 1.75 3.07 17.26 $17.90 $ 308.95 $2,237.86 Form SBE 48 Form SBE 48 $474.93 $ 127.57 $ 65.98 -- $ 668.48 $ 1,569.30 Deductions Deductions Common Mistakes in Filling Out Common Mistakes in Filling Out Federal Withholding Tax Federal Withholding Tax Payroll Report Payroll Report 1. Work Classification is not on payrolls. 2. Not stating if a person is an Apprentice or not. 3. Wrong wages paid. 4. Only need the full employees name and last four digits of the social security number. 5. Statement of Compliance is not being signed. 6. Payrolls are not numbered and “Final” is not marked as final payroll. 5
Certified Payroll Workshop – District 2 April 2, 2012 When Certified Payroll Reports When Certified Payroll Reports Summary of Completing the Summary of Completing the Are Not Correct Are Not Correct Certified Payroll Certified Payroll � Puts you in bad standing with the � Need to submit: Project Owner/General Contractor, ◦ Contractor or Sub-contractor Checkboxes Department of Labor, etc. and can ◦ Company Address damage the overall cash position of ◦ Payroll Number. your company. Examples: o Your reports are rejected due to � (e.g. Payroll No. 1 for 1st week of work on the inadequate information. job) ◦ For Week Ending (use the week ending o You did not pay your employees the wage rates listed in the Wage date) Decision ◦ Project Number. o You paid your employees their normal ◦ Contract Number. “non-prevailing wage rate” and you didn’t submit certified payroll reports Summary of Completing the Summary of Completing the Summary of Completing the Summary of Completing the Certified Payroll Certified Payroll Certified Payroll Certified Payroll � Payroll Summary Information � Payroll Summary Information Name and Individual Identifying Number (e.g. 1. Gross Amount Earned This Job / All Jobs 7. Last four digits of Social Security Number) of worker Deductions; Based on Gross Wages ALL 8. Withholding Exemptions Projects 2. Employee Work Classification Net Wages Paid for the Week 3. 9. Hours Worked: Day and Date 4. Total Hours 5. Rate of Pay / Cash Fringes 6. Contractors Paying Fringe Benefits in Cash to the Employee • Contractors Pay All Required Fringe Benefits to a Union or • Bona-Fide Fringe benefit Plan Summary of Completing the Summary of Completing the Summary of Completing the Summary of Completing the Certified Payroll Certified Payroll Certified Payroll Certified Payroll � Completing the Statement of Compliance � Completing the Statement of Compliance 1. Date 11. Company 12. Deduction Statement 2. Your Name & Title 13. Fringe Benefit Check Boxes 3. Company Where Fringe Benefit are Paid to Approved Plans, Funds. • 4. Project / Job Name or Programs 5. Work Week Beginning Date Where Fringe Benefits are Paid in Cash • 14. Exceptions 6. Month of 15. Remarks 7. Year 16. Your Name 8. Work Week Ending Date 17. Your Title 9. Month 18. Signature 10. Year 6
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